In a major move to promote alternative energy and provide relief to the public, the government of Pakistan has officially reduced the sales tax on solar panels from 18% to 10%.
This decision was approved along with several other financial measures in the National Assembly. The aim is to encourage the use of solar energy and ease the financial burden on consumers looking to switch to cleaner, renewable power sources.
Before the budget announcement, “Deputy Prime Minister Ishaq Dar” addressed the Senate and emphasized the importance of reducing taxes in the solar sector. He revealed that around “46% of the components and materials used in solar systems in Pakistan are imported”, which adds to their overall cost.
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To help reduce this burden, the government has now decided to lower the sales tax rate on solar panels. Ishaq Dar explained that the “revised 10% rate” will support the growth of solar energy in the country, even though much of the equipment is still being imported.
This move has been welcomed by environmental advocates, solar energy businesses, and households looking to install solar systems. It’s seen as a positive step toward reducing dependency on fossil fuels and addressing the country’s ongoing energy crisis.
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